Vanguard terminates global multi-factor active ETF

Vanguard has announced the closure of its Vanguard Global Multi-Factor Active exchange traded fund (ETF), effective after the close of trading on 22 June 2022.

The announcement followed a lacklustre Easter period for the ETF industry with overall investor caution causing trading values to plummet to levels not seen in the last 11 months, representing a fall of 35% ($7.5 billion in total), according to BetaShares. Out of the first four months of the year, three of them had seen negative flows.

In an announcement to the Australian Securities Exchange (ASX), Vanguard said the decision to terminate the fund was based on the fund’s low asset growth since inception, client and market feedback and modest anticipated future client demand.

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“Vanguard has decided to provide investors with 18 trading days’ notice of its intention to terminate the fund,” it said.

The announcement said it was expected investors in the fund would receive a special distribution in respect of their units in the fund on or about 10 June, 2022 and a final distribution in respect of their units in the fund following the termination on or about 13 July, 2022.

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Stay in your lane Vanguard.

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